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very very very urgent

724 views 4 replies

manik

ca in practice

420 Points Posted on 03 May 2011

ours is a construction company, we had made a provision for taxation for rs.315000 as on 31.03.10, there stands a dr. balance of tds deducted by client of rs.750000, the tax liability is rs.198000 and net refundable amt is rs.552000, how to do the adjusting entries, pls tel

Replies (4)

SACHIN KANSAL

56 Points Posted on 03 May 2011

Hi manik

First of all, writeoff the excess provision of Rs. 117000(315000-198000) by passing the entry

Provision for Tax a/c..............Dr 315000

To P&L Appropriation/ G.Reserve 117000

To TDS Receivable A/c 198000

And balance amt of TDS is t/f to Income Tax refund Receivable A/c, which settle when your company receive I.T refund.

Guest

Originally posted by : SACHIN KANSAL
	Hi manik First of all, writeoff the excess provision of Rs. 117000(315000-198000) by passing the entry Provision for Tax a/c..............Dr 315000 To P&L Appropriation/ G.Reserve 117000 To TDS Receivable A/c 198000 And balance amt of TDS is t/f to Income Tax refund Receivable A/c, which settle when your company receive I.T refund.